HHS awards $161K lease for nonresidential building in Virginia
Contract Overview
Contract Amount: $13,794,997 ($13.8M)
Contractor: Cesc ONE Democracy Plaza L.P.
Awarding Agency: Department of Health and Human Services
Start Date: 2008-01-23
End Date: 2012-07-19
Contract Duration: 1,639 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LRP0702114 JUNRENT 6701 DEMOC. INV407JUN07 $161,027.91
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $13.8 million to CESC ONE DEMOCRACY PLAZA L.P. for work described as: LRP0702114 JUNRENT 6701 DEMOC. INV407JUN07 $161,027.91 Key points: 1. The contract is for a nonresidential building lease in Virginia. 2. The awardee is CESC ONE DEMOCRACY PLAZA L.P. 3. The contract was awarded under full and open competition. 4. The contract duration is 1639 days.
Value Assessment
Rating: fair
The contract value of $161,027.91 over approximately 4.5 years suggests a moderate annual cost for leasing nonresidential space. Benchmarking against similar federal leases for office or laboratory space in the region would be necessary for a precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The lease cost represents a direct expenditure of taxpayer funds for necessary facilities. The competitive award process aims to minimize unnecessary costs.
Public Impact
Provides essential facilities for the National Institutes of Health operations. Supports local economy through lease payments to a private entity. Ensures continuity of government services by securing necessary space.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lease duration is relatively long (over 4 years).
- Specific use of the leased space is not detailed.
Positive Signals
- Awarded under full and open competition.
- Contract awarded to a single entity, suggesting a clear need.
Sector Analysis
The sector involves leasing nonresidential buildings, a common requirement for federal agencies needing physical space for operations. Spending benchmarks for this sector vary widely based on location, size, and type of facility.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as the prime awardee or as subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
Standard contract oversight procedures by the Department of Health and Human Services would apply. The contract's duration and value suggest routine monitoring for compliance and performance.
Related Government Programs
- Lessors of Nonresidential Buildings (except Miniwarehouses)
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lease duration exceeds 4 years.
- Lack of detail on specific use of leased space.
- No indication of small business participation.
- Potential for inflexibility with long-term lease.
Tags
lessors-of-nonresidential-buildings-exce, department-of-health-and-human-services, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.8 million to CESC ONE DEMOCRACY PLAZA L.P.. LRP0702114 JUNRENT 6701 DEMOC. INV407JUN07 $161,027.91
Who is the contractor on this award?
The obligated recipient is CESC ONE DEMOCRACY PLAZA L.P..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $13.8 million.
What is the period of performance?
Start: 2008-01-23. End: 2012-07-19.
What is the specific purpose and size of the leased nonresidential building, and how does its cost compare to market rates for similar facilities in the area?
The provided data does not specify the exact purpose or square footage of the leased building. To assess value, a comparison with prevailing market rates for comparable commercial or laboratory space in the Virginia region, considering factors like location, amenities, and lease terms, would be crucial. This would help determine if the $161,027.91 awarded amount represents a fair market price.
What are the potential risks associated with a multi-year lease for nonresidential space, particularly concerning flexibility and future needs?
A significant risk with multi-year leases is the potential for reduced flexibility if agency needs change or if the leased space becomes underutilized or unsuitable. This could lead to costs associated with breaking the lease or paying for unused space. However, long-term leases can also provide cost stability and ensure continued access to critical facilities.
How effectively does this lease support the operational mission of the National Institutes of Health, and are there alternative solutions that could offer better value?
The effectiveness of this lease hinges on its direct contribution to NIH's mission, such as providing necessary laboratory or office space. Without details on the space's function, it's difficult to assess. Alternative solutions might include consolidating existing space, exploring government-owned facilities, or negotiating shorter lease terms if future needs are uncertain, potentially offering better value or adaptability.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2345 CRYSTAL DR STE 1000, ARLINGTON, VA, 08
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,794,997
Exercised Options: $13,794,997
Current Obligation: $13,794,997
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2008-01-23
Current End Date: 2012-07-19
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2015-02-25
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